Ripple has taken equity stakes in two UK-based companies, ZILO and Licuido, as part of a push to bring traditional fund shares onto the XRP Ledger. The moves signal a broader strategy to use Ripple's stablecoin RLUSD for settlement rather than its native token XRP, which will only cover network fees.
What ZILO and Licuido Do
ZILO provides software that acts as the official register for fund shares, tracking ownership for clients including State Street, Citi, and Fidelity Investments. Licuido tokenizes those fund shares on the XRP Ledger and runs a marketplace where users can borrow cash against the tokens. Licuido Markets, the trading arm, is not licensed by the UK's Financial Conduct Authority; it operates under the license of Sapeno Partners LLP.
Why RLUSD, Not XRP
All transactions from these initiatives will settle in RLUSD, Ripple's stablecoin. XRP's role is limited to paying the network fee of 0.00001 XRP per transaction, which is then burned. Since the ledger launched, roughly 14.4 million XRP have been burned — worth about $15 million — out of an initial supply of 100 billion. XRP currently trades near $1.07, down 1.25% on the day and roughly 63% over the past year.
The Proposed 'Sponsored Fees' Upgrade
A proposed upgrade called 'sponsored fees' could let banks pay network fees for their users, further reducing XRP's utility. If adopted, the token would have even less reason to be held or used beyond the minimal fee burn.
Aviva's Tokenized Fund and a Validator Discrepancy
Aviva Investors recently tokenized a fund on the XRP Ledger, approved by Ireland's central bank, with BNY Mellon as custodian. Ripple's press release stated the network runs on 120 XRPL validators, but Aviva said there were 130+ just five days earlier. The discrepancy has not been explained.
The next question is whether the sponsored fees proposal will move forward — and what that would mean for XRP's already limited role on the ledger it was built for.
